I need to late file 45(2) and have read a number of relevant posts on here but did not find anything specific to my case. Hope you can help! I plan to late file 45(2) along with Taxpayer Relief Request (RC4288) to waive penalty. I read some advice by an AI generator that I must calculate the penalt…

This has been discussed in detail previously [image] Late filing of 45(2) Election Tax Topics I have a new client this year who began renting her principal residence in 2021 and moved in with her mother. Her previous accountant didn’t report the change in use…

The penalties and interest in arrears are well published. Just add the years right? One is for penaties and one is for interest. Doesn’t it have an example of $250+250? I hear CRA uses AI to reject too. It can get complicated. Sometimes clients are a pain. It does keep me busy.

I believe the default assessment for late 45(2) elections (given CRA does want to impose a late filing penalty) is 162(7) whereby no other subsection applies; meaning it could be anywhere between $25 and $2,500. It’s not cumulative.

That sounds like the T1135 no filing/late penalty. CRA does not want? Their actions seems to be imposing late penalites, then you have interest, then the demand letter arrives, eventually the collection department will call, eventually a payment proposal will be suggest, if not they garnish and p…

Defiantly a nightmare situation to be in! 162(7) is the catchall subsection that is deferred to where no other subsection applies. CRA (actually the minister) holds the right to assess penalties on Section 45 elections, as they are not filing obligations.

I don’t really like thses so call late elections, because you are going to find out, something was done in the past at a later time, CRA, most the time, would allow late elections if they are immaterial. Few times I did, found there were incomplete information, CRA reviewed it and nobody followed …

Late 45(2)

Tax Topics

Deepinthemoneycall January 4, 2026, 8:03am 2

This has been discussed in detail previously

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Late 45(2)

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